Responding To Requests For Proposals NC Economic Developers Association January 27, 2009 Jeannette Goldsmith
Responding To Requests For Proposals
NC Economic Developers Association
January 27, 2009Jeannette Goldsmith
Presentation Overview
Overview of the Facility Siting Process Fundamentals of Responding to RFPs RFP Content
– Site Date: What is important?
Proposals Evaluations Responding to RFPs: Tactics Preparing for Site Visits
Introduction
MSC specializes in site selection and incentive negotiation services
MSC was established in July 2000 by Ed McCallum and Mark Sweeney
MSC brings more than 50 years of combined location consulting experience to our clients worldwide
MSC has represented over 40 companies in approximately 70 site selection engagements
We have advised our clients on 33 public announcements
totaling over $5 billion dollars of investment since our inception
KasleSteel
INDIANA MUNICIPALPOWER AGENCY
Clients
Overview of Facility Siting Process
Competitive Site Selection
Candidate Locations
Site Decision
Define Search Region -Center-of-Market Analysis
Cost Modeling / Incentives
Regional Screening- Project Criteria
RFP & Proposal Screening
Risk Analysis
Site Visits / Comparative Assessment
Overview of the Facility Siting Process
Planning Phase
•Conception
•Feasibility
•Investment Decision
Phase I
•Alignment/Criteria
•Regional Analysis
•Areas of Interest
•RFP
•Candidate Communities
Phase II
•Community Visits
•Site Evaluation
•Comparative Analyses
•Finalist Communities
Phase III
•Negotiations
•Evaluation
•Site Due Diligence
•Selection
•Announcement
Managing Your Site Inventory
Responding to RFPs
Preparing for Site Visits
Fundamentals of the RFP Process
Fundamentals of the RFP Process
Through advances in technology and the increased availability of data, the initial steps of the site selection process can be conducted in-house, without contacting the state or local economic development officials
When you are contacted, you are already an “Area of Interest”
Fundamentals of the RFP Process
Strive to be– Accurate– Timely– Complete
Use communication to distinguish your community– Acknowledge receipt of RFP– Follow-up after sending proposal
Fundamentals of the RFP Process
Focus on providing the information that is requested– Important to communicate how your site
meets the Minimum Criteria
Supplement the submission with other information you would like to provide
RFP Content
RFP Content
Information from the Prospect– Key criteria: Do you know exactly what the
prospect looking for?– Proposal Elements: What does the prospect
want back as a part of the response?• Questionnaire• Attachments• Electronic or hard copy
– Deadline: When do they want the information?
RFP Content: Site Characteristics
Data– Size– Configuration / shape– Number of parcels– Property ownership / control– Easements and right-of-ways– Topography– Bodies of water– Soil types
RFP Content: Site Characteristics
Visuals / attachments– General location map– Aerial photograph– Topographic map– FEMA floodplain map– Ownership map / tax map– Documentation of property availability– Easements / right-of-ways map– Soils map
RFP Content: Zoning
Data– Zoning designation(s) of the site– Surrounding zoning / land use– Process for rezoning (if applicable)
Visuals / attachments– Zoning map– Letter of willingness to considering rezoning
(if applicable)
RFP Content: Transportation
Data– Roads– Rail– Airports– Ports
Visuals / attachments– Transportation infrastructure maps– Letter from rail service provider
RFP Content: Utilities
Data– Electric – Natural gas – Water – Sewer
Visuals / attachments– Utility infrastructure maps– If utilities are not at the site, a letter from the service
providers regarding utility extension
RFP Content: Environmental
Data– Studies: Phase I Environmental, Geotechnical Assessment,
Wetlands Delineation, Archaeological– Permitting process– Mineral rights ownership (if applicable)– Any past mining / drilling (if applicable)– Sink holes, natural springs, caves (if applicable)
Visuals / attachments– Copies of studies– Map of mining / drilling locations– Map of sink holes, natural springs, cave locations
RFP Content: Emergency Protective Services
Data– Ambulance / EMT
• Provider, distance from site, personnel
– Fire• Provider, resources, distance from site, personnel,
insurance rating
– Police• Provider, resources, personnel
RFP Content: Workforce
Data– Largest employers– Largest manufacturers– Recent new or expanding projects– Recent closings or layoffs– Employment statistics
RFP Content: Education
Data– Public School Districts (K-12)
• Enrollment, spending, student / teacher ratio
– Community colleges, technical schools• Enrollment, distance from site, programs
– Universities• Enrollment, distance from site, programs
RFP Content: Labor Management Relations
Data– Largest unionized companies
• Union(s), number of employees, % unionized
Proposal Evaluation Process
Proposal Evaluation
Minimum Criteria– How well does the site meet our minimum
criteria?– Site size, access to utilities, transportation
networks, site readiness
Technical Attractiveness Criteria– Workforce– Training– Quality of Life
Minimum Criteria
Minimum Criteria– Absolutes for success– Cannot be compromised– Relatively easy to measure
1. Property Size
2. Rail Available
3. Zoning
4. Utilities
5. Air Attainment
Project Minimum Criteria
YesYesNoNoYes
LocationAlternativeEliminated
EXAMPLE of Minimum Criteria
Transportation / Logistics– Site must be located on a four-lane, divided, limited
access highway
Facilities / Site Suitability– Site must have a minimum of 50 developable,
contiguous acres– Site must be zoned appropriately or have a plan to
do so within 90 days– Site must be capable of being under full control
within 90 days of being selected as finalist
Technical Attractiveness Criteria
Technical Attractiveness Factors– Important but not absolute– Willing to concede in one area to gain in another– Measurable
Assigning values to these factors – Establishes importance of one criteria over another– Enables evaluation and processing of large quantities
of information and data– Sharpens the visibility of important criteria
EXAMPLE of Technical Attractiveness Criteria
Cost of Doing Business 10 Workforce 8 Size of the workforce 10 Percent employed in manufacturing 9 Unemployment Rate 8 Qualitative Assessment of available labor 7 Quality Training Programs 5 Absenteeism and Turnover Rates 3 Quality of local public schools 1
Transportation / Logistics 7 Ingress & Egress are conducive to safe entry and exit 4 Multiple access points for passenger and truck traffic 5 Number of work stoppages at port facility 8 Port will require upgrades 9
EXAMPLE of Technical Attractiveness Screening
Factor Wt. Score Wt'd Score
Subfactor Wt. Score Wt'd Score
Response Notes
Workforce 8 7.5 60Quality Training Programs 10 7 70 Average Have excellent training programs, but
they are not very well integrated with the recruiting and screening functions.
Qualitative Assessment form Employer Interviews
9 6 54 Average All labor interviews indicated a motivated work ethic with a strong positive attitude but fairly low-skilled.
Quality of local public schools 7 5 35 Average ACT Scores 46th in Nation (19.9 - 13.0% tessted). SAT Scores (M-505 and V-493, 67.0% participation rate.)
Percent employed in manufacturing 6 10 60 >15% 69.0 manufacturing
Size of the workforce 5 7 35 Greater than 75,000
Numbers reported are 1,005,166 total labor force. There is some question as to the radius from which these numbers were derived. Although long distance commuting for quality jobs is common in this area, the size of the labor pool in the immediate area is small.
Unemployment Rate 4 10 40 4%-8% 2000 - 5.5%, 2001 - 8.2%, 2002 - 8.0%, Current 6.9.%
Absenteeism and Turnover Rates 3 10 30 Excellent To be determined during site visits
Right to work status 2 10 20 Right to work state
TOTALS 46 344AVERAGE SCORE 7.5
Responding to RFPs:Tactics
Responding to RFPs
Use a 3-ring window-view binder– Provides space for a cover page– Allows contents to be removed, copied, and
replaced– Keeps materials intact
Responding to RFPs
Prepare each cover page to include– Project name– Site name– Location (City, County, State)– Submitting organization– Date of submission
Label the spine of the binder
Responding to RFPs
When submitting more than one site, include all parallel / common information (i.e., cover letter, road maps, etc.) with each site
Responding to RFPs
Provide a Table of Contents or Reference Page at the front of the submission
Use tabs or colored paper to separate sections and attachments
Responding to RFPs
Any large documents that cannot be bound (i.e., E-size plats) should be placed in sheet protector sleeves
Responding to RFPs
When submitting more than one site, create a CD for each site
Place CD within the binder sleeve, or an adhesive CD sleeve
Summary
Characteristics of a good proposal– Clearly labeled– Organized– Thorough– Meets deadline
Preparing For Site Visits
Planning Phase
•Conception
•Feasibility
•Investment Decision
Phase I
•Alignment/Criteria
•Regional Analysis
•Areas of Interest
•RFP
•Candidate Communities
Phase II
•Community Visits
•Site Evaluation
•Comparative Analyses
•Finalist Communities
Phase III
•Negotiations
•Evaluation
•Site Due Diligence
•Selection
•Announcement
Managing Your Site Inventory
Responding to RFPs
Preparing for Site Visits
Overview of the Facility Siting Process
Fundamentals for Site Visits
Goal is to understand
– Site conditions
and / or
– Operating conditions
and / or
– Living conditions
Preparing for Site Visits
Understand the function of the visit, and who is coming
Preparing for Site Visits
Provide materials– Itineraries (with names)– Site summary sheet– Maps!!!
Preparing for Site Visits
Review the project drivers and specifications and be prepared to address how the site meets them
Assemble a site visit team that can provide additional expertise
Preparing for Site Visits
Make sure that all members of the site visit team are familiar with– Project specifications– Site that was submitted
Position– Strengths to match client needs
• Maximize value
– Mitigate weaknesses• Minimize impact
Communicate– Answer the questions!
Conducting Site Visits
Summary
What Does This Mean For You?
Siting is a process driven by some key fundamental issues– Understanding those fundamentals and the process
will enable you to better influence the decision Responsiveness with quality, critical, and
relevant information is the best way to influence the decision
Know your product, know your customer, and respond appropriately
McCallum Sweeney Consulting
Jeannette GoldsmithPrincipal
McCallum Sweeney Consulting550 S. Main Street - #550Greenville, SC 29601
864-672-1600864-672-1610 (fax)